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Originally Posted by SteveEisenberg
Only if there is solid evidence for the relationship.
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Yes, that's why I said "if". I don't claim to know what effect pricing has on piracy.
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As a ratio, the price difference between a a 99 cent book and a pirated book is the same as the price difference between a 99 dollar book and a pirated book -- infinity. So what's more important, the ratio or the absolute difference? And how's the publisher to know?
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How many people won't bend over to pick up a penny? If they pick up the penny, they gain infinitely more money than they do if they do not. But many people don't bother, because it is only a penny. A quarter, nearly everyone will stop to pick it up. Ratios don't seem to matter when we are talking about something very small.
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A really big publisher can experimentally approximate the most profitable price points. I can't think of ways the publisher can know why that price works best.
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They have marketing people who do research to set the right price. That doesn't mean they are always right. If increasing price leads to an increase in piracy sufficient to lower their overall revenue, then they might want to consider lowering the price. It might be that there's an increase in piracy, but not enough to lower the revenues. None of this justifies the pirates of course.